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Dynacor (TSX:DNG) progresses Senegalese processing plant

Mining
TSX:DNG
15 July 2020 12:27 (EDT)

Dynacor Gold Mines (DNG) has completed a due diligence report on a plan to expand its ore-purchasing business into Africa.

The company is developing an ore-processing pilot plant in Senegal, to make itself more available to artisanal and small-scale African miners.

The due diligence report has shown the company can move forward on construction, following the completion of successful testing of the pilot plants proposed operations.

The pilot plant will be operated by a new entity, of which Dynacor will own 51 per cent. KN Equipments, a Canadian mining equipment service provider with a long track record in Senegal will own 25 per cent and the Senegalese sovereign wealth fund FONSIS will own the remaining 24 per cent. 

Thus far, Dynacor has secured three alluvial small-scale gold miners as the initial providers of throughput into the plant.

President and CEO of Dynacor Jean Martineau said he was excited to be expanding the business model, which has been proven to work in Canada, overseas.

“Besides the significant operational growth potential, which will stem from the Senegal operation, we are very proud to be the first and only company on a global scale to offer our ore-processing service and PX Impact Clean Gold program to the ASM community.

“Our new company brings to Senegal over 20 years of experience in purchasing and processing ore from the ASM industry,” he said. 

Dynacor Gold Mines (DNG) is up 1.5 per cent and is trading at C$1.95 per share at 2:00 pm EDT. 

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